The American Lawyer’s “Litigator of the Week” Highlights Ropes & Gray Team for Win against FTC

A Ropes & Gray team was recognized in The American Lawyer’s “Litigator of the Week” column for succeeding in dismissing private equity firm Welsh, Carson, Anderson & Stowe from a high-profile and closely watched antitrust lawsuit brought by the Federal Trade Commission against WCAS and its portfolio company U.S. Anesthesia Partners over a series of acquisitions in Texas.

The team was led by litigation & enforcement partners David Hennes and Jane Willis and included Doug Hallward-Driemeier and Kathryn Caldwell, C. Thomas Brown, Jonathan Klarfeld, senior attorney David Young, associates Elena Davis, Sandra Hough Masselink, Ioana Moldovan, Logan Hovie, Rory Skowron, Alexander Blanchet and paralegal Jerome Genova.

In 2023, the FTC filed a complaint against Welsh Carson and USAP under Section 13(b) of the FTC Act, alleging Welsh Carson had created USAP in 2012 to execute a “roll-up strategy” by which USAP would acquire large anesthesiology practices and then enter into or maintain price-setting and market allocation arrangements with its competitors. 

Welsh Carson argued the FTC was ignoring well-established principles of corporate separateness in seeking to hold a private equity sponsor liable for the conduct of its portfolio company, which is a distinct corporate entity.

On May 13, U.S. District Judge Kenneth M. Hoyt of the Southern District of Texas dismissed Welsh Carson from the case, and agreed with Ropes & Gray’s arguments that the FTC had not alleged any ongoing or imminent antitrust violations by Welsh Carson and that the agency lacked authority to seek injunctive relief under Section 13(b) against a minority investor for actions that investor is alleged to have taken years in the past.